In a recent vlog, Xena A. Balcazar, an associate in the Elder, Matrimonial and Family Law Practice Groups at Mandelbaum Barrett PC, discusses a longstanding legal ambiguity in matrimonial law: what occurs when a spouse passes away before a divorce is finalized. Commonly referred to as the “black hole” in divorce proceedings, this complex issue has now been clarified through recent amendments to New Jersey’s equitable distribution statute.
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A Decades-Old Legal Gap
Roughly 20 years ago, the New Jersey Supreme Court began grappling with what happens to marital assets when one spouse passes away before a final judgment of divorce is entered. At that time, courts struggled to determine whether the surviving spouse had any equitable rights to the marital estate. This created a confusing legal limbo where neither the Family Court nor Probate Court had clear jurisdiction over equitable distribution in such cases.
The Old Questions: Elective Shares and Intestacy
Before the recent legal reform, surviving spouses often had to rely on the probate system, which raised complex questions. For instance, would the surviving spouse be entitled to an elective share, allowing them to claim one-third of the deceased spouse’s augmented estate, even if they had been disinherited? Alternatively, would they receive an intestate share under New Jersey’s default inheritance laws? Unfortunately, in cases where a divorce was still pending, these rights were often unclear or, in some cases, vanished entirely.
A Major Legislative Update
As of last year, an important change was made to address this complicated situation. The New Jersey equitable distribution statute was amended to allow Family Court to handle equitable distribution matters even if one spouse passes away before the divorce is finalized.
This change provides much-needed clarity and protection, helping ensure that a spouse’s contributions to marital assets are recognized despite such a difficult circumstance. According to Balcazar, “The legislators have now addressed how the surviving spouse can be protected and how their rights to those marital assets can be preserved.”
Protecting Your Rights in Complex Circumstances
With this legislative fix, New Jersey family law now offers clearer protection for divorcing spouses facing this difficult and rare scenario.
